Trademark

Anette B.

GoDaddy not liable for third-party snagging prior owned domain – Rigsby v. GoDaddy Inc.

This case should present as a cautionary tale of why you want to ensure you’ve got your auto-renewals on, and you’re ensuring the renewal works, for your website domains if you plan on using them long term for any purpose. Failing to renew timely (or ensuring there is actual renewal) can have unintended frustrating consequences.

Plaintiffs-Appellants: Scott Rigsby and Scott Rigsby Foundation, Inc. (together “Rigsby”).

Defendants-Appellees: GoDaddy, Inc., GoDaddy.com, LLC, and GoDaddy Operating Company, LLC and Desert Newco, LLC (together “GoDaddy”).

Scott Rigsby is a physically challenged athlete and motivational speaker who started the Scott Rigsby Foundation. In 2007, in connection with the foundation he registered the domain name “scottrigsbyfoundation.org” with GoDaddy.com. Unfortunately, and allegedly as a result of a glitch in GoDaddy’s billing system, Rigsby failed to pay the annual renewal fee in 2018. In these instances, typically the domain will then be free to purchase by anyone and this is exactly what happened – a third-party registered the then-available domain name and turned it into a gambling information site. Naturally this is a very frustrating situation for Rigsby.

Rigsby then decided to sue GoDaddy for violations of the Lanham Act, 15 U.S.C. § 1125(a) (which for my non-legal industry readers is the primary federal trademark statute in the United States) and various state laws and sought declaratory and injunctive relief including return of the domain name.

This legal strategy is most curious to me because they didn’t name the third-party that actually purchased the domain and actually made use of it. For those that are unaware, “use in commerce” by the would be trademark infringer is a requirement of the Lanham Act and it seems like a pretty long leap to suggest that GoDaddy was the party in this situation that made use of subject domain.

Rigsby also faced another hurdle, that is, GoDaddy has immunity under the Anticybersquatting Consumer Protection Act, 15 U.S.C. § 1125(d) (“ACPA”). The ACPA limits the secondary liability of domain name registrars and registries for the act of registering a domain name. Rigsby would be hard pressed to show that GoDaddy registered, used, or trafficked in his domain name with a bad faith intent to profit. Similarly, Rigsby would also be hard pressed to show that GoDaddy’s alleged wrongful conduct surpassed mere registration activity.

Lastly, Rigsby faced a hurdle when it comes to Section 230 of the Communications Decency Act, 47 U.S.C. § 230. I’ve written about Section 230 may times in my blogs, but in general Section 230 provides immunity to websites/platforms from claims stemming from the content created by third-parties. To be sure, there are some exceptions, including intellectual property law claims. See 47 U.S.C. § 230(e)(2) there wasn’t an act done by GoDaddy that would fairly sit square within the Lanham Act such that they would have liability. So this doesn’t apply. Additionally, 47 U.S.C. § 230(e)(3) preempts state law claims. Put another way, with a few exceptions, a platform will also avoid liability from various state law claims. As such, Section 230 would shield GoDaddy from liability for Rigsby’s state-law claims for invasion of privacy, publicity, trade libel, libel, and violations of Arizona’s Consumer Fraud Act. These are garden variety tort law claims that plaintiff’s will typically assert in these kinds of instances, however, plaintiffs have to be careful that they are directed at the right party … and it’s fairly rare that a platform is going to be the right party in these situations.

The District of Arizona dismissed all of the claims against GoDaddy and Rigsby then appealed the dismissal to the Ninth Circuit Court of Appeals. While sympathetic to the plight of Rigsby, the court correctly concluded, on February 3, 2023, that Rigsby was barking up the wrong tree in terms of who they named as a defendant and appropriately dismissed the claims against GoDaddy.

To read the court’s full opinion which goes into greater detail about the facts of this case, click on the citation below.

Citation: Rigsby v. GoDaddy, Inc., Case No. 21016182 (9th Cir. Feb. 3, 2023)

DISCLAIMER: This is for general information only. None of this is meant to be legal advice nor should it be relied upon as such.

Anette B.

“Internet Law” explained

For some reason, every time one says “lawyer” people tend to think of criminal law, family law or personal injury law.  Perhaps because those are very common.  Most people even understand the concept of a corporate or business lawyer, someone who handles trust and estates, or even one that handles intellectual property.  However, when we say “Internet Law” many people get the most confused look on their face and say: “What the heck is that?” If that is you, you’re in good company.  And, to be fair, the Internet really hasn’t been around all that long.

If you were to read the “IT law” page on Wikipedia you’d see a section related to “Internet Law” but even that page falls a little short on a solid explanation – mostly because the law that surrounds the Internet is incredibly vast and is always evolving.

When we refer to “Internet Law” we are really talking about how varying legal principles and surrounding legislation influence and govern the internet, and it’s use.  For example, “Internet Law” can incorporate many different areas of law such as privacy law, contract law and intellectual property law…all which were developed before the internet was even a thing.  You also have to think how the Internet is global and how laws and application of those laws can vary by jurisdiction.

Internet Law can include the following:

  • Laws relating to website design
  • Laws relating to online speech and censorship of the same
  • Laws relating to how trademarks are used online
  • Laws relating to what rights a copyright holder may have when their images or other content is placed and used online
  • Laws relating to Internet Service Providers and what liabilities they may have based upon data they process or store or what their users do on their platforms
  • Laws relating to resolving conflicts over domain names
  • Laws relating to advertisements on websites, through apps, and through email
  • Laws relating to how goods and services are sold online

As you can see just from the few examples listed above, a lot goes into “Internet Law” and many Internet Law attorneys will pick only a few of these areas to focus on because it can be a challenge just to keep up.  Indeed, unlike other areas of law, “Internet Law” is not static and is always evolving.

Do you think you have an Internet Law related question? If you are in the state of Arizona and are looking for that solid “friend in the lawyering business” consider Beebe Law, PLLC!  We truly enjoy helping our  business and individual clients and strive to meet and exceed their goals!  Contact us today.

All information contained in this blog (www.beebelawpllc.blog.com) is meant to be for general informational purposes only and should not be misconstrued as legal advice or relied upon.  All legal questions should be directed to a licensed attorney in your jurisdiction.

 

 

 

 

Anette B.

Trademarks and Fair Use in Commentary

I have clients who operate websites that allow third-party content.  While NOT my clients, think about sites like Yelp, Twitter, Glassdoor, or even Facebook as examples. When you operate websites that allow other people to go online and write whatever they want, chances are you are going to see an allegation of some variation of Trademark Infringement via a cease and desist letter.  I typically see them in the context of someone alleging trademark or service mark infringement because someone is using the trademark to talk about them online – most often critically – but not always.  Sometimes content creators are using a brand’s trademark to speak highly of the brand or explain how to use something.  Either way, these cease and desist letters come in from attorneys (which I always raise an eyebrow at), reputation management companies (again which I raise an eyebrow at) and everyday people which I can better understand because many simply don’t have an understanding of this area of law.

Due to the overwhelming issues that I see with these cease and desist letters (or even a friendly, hey, could you not use our stuff), I thought it might be good to cover some basics:

What is the Purpose of Trademark Law?

Trademark law helps ensure that consumers can rely on various types of marks (trademark, service mark, etc.) to identify the source of goods or services by prohibiting competitors from using the marks in a way that would confuse consumers about the source, sponsorship, or affiliation of goods or services.

What is a Trademark?

A trademark is a word, name, symbol, or device, or any combination thereof, that is used to distinguish the goods of one person from goods that are manufactured or sold by others.  Think of it as telling people the source of the goods or services.  Think of “Pepsi” or “The Home Depot” for example.  Those are trademarked words that clearly distinguishes them from other sources of goods like “Coca-Cola” or “Lowe’s.”

What is a Service mark?

A service mark, is essentially identical to a trademark, with the exception that the mark is used to identify and distinguish services rather than products.  Think of the well known service marks of American Express or Southwest Airlines. These are services marks that clearly distinguish them from other service marks like Discover or American Airlines.

Protecting your Marks.

It is important to police your trademark so as to keep it from falling by the way of generocide (death by becoming too generic due to its popularity and/or significance) or being counterfeited (knock-offs). A common example of generocide includes trademarks like “escalator” for the moving staircases.  If you are curious you can read more about generic trademarks.  A common example of trademark counterfeiting includes the cheap knock-off/fake Louis Vuitton handbags.  You know, the ones that look like it’s the real deal at first glance but any savvy fashionista knows better upon closer inspection.

Trying to use Trademark as a Reputation Management Method.

Yes, there are times when you should be policing your trademark as discussed above. However, just as I cannot talk about The Home Depot without saying “The Home Depot,” the same goes for anyone else wanting to talk (or write), good or bad, about a particular brand. Such use falls under what is called “nominative fair use” which applies when a person has used one’s trademark to describe or refer to the trademark holder’s product. As with most aspects of law there are caveats and tests, however, generally speaking, just because you have a registered trademark doesn’t mean that you can submit cease and desist letters and allege trademark infringement as a way to get websites/content creators to take down content about your business, especially if it is critical of your business.  Chances are, in that critical context, it is NOT trademark infringement.

If you are in the state of Arizona and are looking for that solid “friend in the lawyering business” consider Beebe Law, PLLC!  We truly enjoy helping our business clients meet and exceed their goals!  Contact us today.

All information contained in this blog (www.beebelawpllc.blog.com) is meant to be for general informational purposes only and should not be misconstrued as legal advice or relied upon.  All legal questions should be directed to a licensed attorney in your jurisdiction.  
Anette B.

Five Benefits to Keeping Your Business Lawyer in the Loop

Let’s face it, the word “lawyer” for many is akin to a four letter expletive that people are offended by. Typically because it reminds people of getting sued and/or having to shell out, often unexpectedly, loads of cash that they rather have spent elsewhere…like on a vacation.  Similarly, like in all professions, not all lawyers are created equal, and not all lawyers really have their client’s financial interests at heart – after all, being a lawyer and having a law firm is a business. I personally pride myself on NOT taking advantage of my clients…giving them direction on how they can do things themselves and helping only where they REALLY need/want it…but after 18+ years in the legal field, I know that not all lawyers share my same client-friendly mindset. It is no wonder that people cringe at the thought of having to use a lawyer.

Lawyers don’t have to be a thorn in your side through.  In fact, a good lawyer can be a business’s greatest adviser and advocate – keeping in mind that a job of a lawyer is to tell you what you NEED to hear which can sometimes be very different than what you WANT to hear. All businesses should have a lawyer or two that they keep in regular contact with and it should be part of your regular business operating budget.

Before you go thinking I’m crazy, here are a few reasons that keeping your lawyer updated on the goings on of your business is advantageous:

  1. Lead Generation: Your lawyer can often be your biggest cheerleader (and lead generator) for future customers. Chances are your lawyer is tapped into many different networks.  You never know when someone they know will need your business’s products or services and a solid referral from your lawyer could be future revenue in your pocket.
  2. Idea Generator: An attorney that understands you, your business, and your goals can be an invaluable asset when it comes to creative thinking.  Brainstorming on new ideas with your lawyer may prove to be helpful in that they may be able to think of concepts outside the box for your business that you may not have already thought about.  What if that lawyer helps you generate the next million dollar idea?
  3. Cost Cutting: One thing that many lawyers are good at is organizing and streamlining processes – it’s part of the way we think.  What if your lawyer was able to give you ideas on how to streamline an existing process that will considerably help cut costs moving forward?  If a few hundred dollars for your lawyer’s time on the telephone could save you thousands of dollars in the next year, wouldn’t you do it?  Sure you would.  You’d be a fool not to.
  4.  Risk Mitigation: When you brainstorm with your lawyer on a new business concept, they can often help you plan your road-map to reach your goals and help you navigate around pitfalls that you might not even think about.  For example, when clients come to me talking about setting up a new business I always ask them the business name and ask if they have considered any reputation issues with that new business name.  The same goes for contracting issues, employee issues, etc. To that end as well, there is a LOT of bad information being circulated around on the internet. Indeed it is wise to conduct your own research but don’t you think it prudent to have your research double-checked by someone who knows where to actually find the correct information when it comes to the law? As Dr. Emily So once said, “better information means better ideas, means better protection.”
  5. Cost Effective: It is a lot cheaper to keep your lawyer up to speed on your business as it grows, even if through a short monthly 15 minute call, than it is to try and ramp your attorney up (trying to teach them everything about your business, including policy changes and the like in a short amount of time) when you suddenly need advice in order to be reactive to a situation – like when you are named as a defendant in a lawsuit.  When you are named as a defendant in a lawsuit, you typically only have 20 days (varies by court and jurisdiction) from the date that you are served with a complaint in order to determine what your defenses are and what sort of a response you will need to file.  That process becomes a whole lot easier if your attorney already knows about you, your business, it’s policies and procedures, etc.  It is also easier to to budget in a few hundred dollars a month to keep your attorney up to date then to get smacked with a request for a $20,000.00 retainer, most of that potentially being eaten up just “learning” about your business, and then having subsequent large litigation bills.

As you can see, there are many reasons to regularly communicate with your attorney and hopefully you would find it more advantageous and beneficial than paying your monthly insurance bill. As Benjamin Franklin once said, “an ounce of prevention is worth a pound of cure!”

If you are in the state of Arizona and are looking for that solid “friend in the lawyering business” consider Beebe Law, PLLC!  We truly enjoy helping our  business clients meet and exceed their goals!  Contact us today.

All information contained in this blog (www.beebelawpllc.blog.com) is meant to be for general informational purposes only and should not be misconstrued as legal advice or relied upon.  All legal questions should be directed to a licensed attorney in your jurisdiction.  

 

Anette B.

So You Want to Run a Website: Common Risks When Hosting Third-Party Content

It seems like EVERYONE today has a website.  Whether it be a personal blog to a full scale business – websites are how people “find” and often “interact” with you today.  However, just like any business, it doesn’t come without risk.  This article will address a few of the most common areas where a website operator can incur liability if they want to host third-party content (i.e., you want to allow people to post and/or comment on postings).

To begin with, as I have referenced in my prior articles regarding Troubles with Defamatory Online Reviews and Content Scrapers, That Would be Harsher Punishment for internet Defamers Stan, Why Google De-Indexing May NOT be an Effective Reputation Management Solution, etc., at least in the United States, the federal law often referred to as the Communications Decency Act, aka Section 230 or the “CDA” generally immunizes websites from third-party content.  In layman’s terms, this means that an internet service provider, such as a website, is not typically liable for content written by a third-party.  That does NOT, however, mean that you don’t have to be cautious.  In fact, the intricacies of the law surrounding the CDA can be quite complex.  It would be tragic for an unsuspecting business to be sued into bankruptcy over preventable little mistakes.

The following are a few common areas of potential liability:

INTELLECTUAL PROPERTY:  Intellectual Property, including claims of Copyright and Trademark Infringement are NOT barred by the Communications Decency Act.  If a third-party puts content on your website that infringes on someone else’s Copyright or Trademark, you could be held liable.

DEVELOPING CONTENT:  Depending on how you solicit and/or edit a third-party’s content you could be held liable.  Many of plaintiffs have argued against website’s editorial decisions or even what sort of requirements/fields are built in for website users to enter information into, can take them outside of the protections of the CDA.

If you are considering starting up a new website or a business with an existing website it is wise to take these matters into account at the very beginning, or as soon as otherwise practicable.  Moreover, individuals and businesses are wise to consult an internet lawyer that practices in internet law when beginning to lay out their business plan for their website.  A consultation fee now can save you THOUSANDS in the long run.

Until next time friends…

All information contained in this blog (www.beebelawpllc.blog.com) is meant to be for general informational purposes only and should not be misconstrued as legal advice or relied upon.  All legal questions should be directed to a licensed attorney in your jurisdiction.  If you are in the state of Arizona, and seeking consultation in the area of infringement relating to Copyright, Trademark, or other risks associated with being a website and hosting third-party content, contact Beebe Law, PLLC today.